India 2024: Booming Economy or Doomed Future?

India is Booming

1. Economic Growth

India became the world’s fifth-largest economy by nominal GDP in 2022, overtaking the UK. According to the International Monetary Fund (IMF), India’s GDP stands at $3.73 trillion (2024), with a growth rate of around 6.5% annually—one of the fastest among major economies .

• The IT sector contributes ~7.4% of India’s GDP, with a market size of $245 billion in 2024, according to NASSCOM .

• Initiatives like "Make in India" have helped boost manufacturing. Foreign direct investment (FDI) inflows reached a record $84.8 billion in FY 2022-23 .

2. The Innovative India

• Practo: This platform has 30 million users annually and operates in over 15 countries, including Singapore and Indonesia .

• DeHaat: With a 1.5 million-strong farmer network and operations across 11 Indian states, DeHaat raised $115 million in 2023 to expand its tech-driven agriculture solutions .

3. UPI Revolution

As of 2024, UPI processes 10 billion transactions monthly, accounting for 75% of India’s digital payments. The platform is expanding internationally, with collaborations in countries like Singapore and the UAE .

4. Infrastructure and Renewable Energy

• Bharatmala Project: 17,411 km of highways have been completed, with a goal of 38,000 km by 2027 .

• Sagarmala Project: Investments in completed and ongoing projects exceed ₹3 lakh crore, modernizing ports and reducing logistics costs .

• Solar Power: India produces 72 GW of solar energy, making it the third-largest global producer. The Bhadla Solar Park in Rajasthan spans 14,000 acres, generating 2.25 GW of electricity annually .

5. The Creative Workforce

India’s population under 25 years old constitutes ~50%, offering a significant demographic dividend. However, the unemployment rate remains high, at 7.7% as of October 2024, according to CMIE .

Is India Dooming?

1. Outdated Models and Policies

The Soviet-inspired Five-Year Plans, implemented between 1951 and 2015, failed to accommodate India’s diversity. NITI Aayog replaced it, focusing on decentralized development. However, implementation challenges persist .

2. Consumerism and Debt

Consumer debt in India has surged, with household liabilities reaching ₹82 lakh crore (2024), reflecting increased spending on discretionary items .

3. Legal and Education Systems

• Over 4.4 crore cases are pending in Indian courts, with some cases stretching decades, according to the National Judicial Data Grid .

• The Gross Enrolment Ratio in higher education rose to 27.3% in 2022, but inequality in access persists .

4. Regional and Religious Divides

Despite its constitutional secularism, religious violence incidents rose by 28% between 2019 and 2023, according to the Ministry of Home Affairs .

5. Manufacturing Gap

India’s manufacturing sector contributes ~17% to GDP, compared to 28.7% in China. Initiatives like “Make in India” aim to boost this to 25% by 2030, but challenges like infrastructure gaps and low domestic trust in local brands persist .

Conclusion

India is a country of paradoxes—booming in innovation and economic growth but struggling with structural issues and social divides. While government initiatives can act as catalysts, real change requires collective effort from its citizens.

Sources:

1. IMF World Economic Outlook Report, October 2024

2. World Bank GDP Data, 2024

3. NASSCOM IT Industry Annual Report 2024

4. Ministry of Commerce, Government of India (FDI statistics)

5. Practo Official Website and Press Releases

6. DeHaat Funding and Expansion Reports (2023)

7. NPCI UPI Statistics, 2024

8. Economic Times: UPI Global Expansion (2024)

9. Bharatmala Progress Report (NHAI, 2024)

10. Sagarmala Progress Report (Ministry of Shipping, 2024)

11. Solar Energy Corporation of India (SECI) Annual Report 2024

12. CMIE Unemployment Data (October 2024)

13. NITI Aayog Reports (2015–2024)

14. Reserve Bank of India Household Debt Reports

15. National Judicial Data Grid, 2024

16. Ministry of Education Annual Statistics (2023)

17. Ministry of Home Affairs Reports on Communal Violence

18. Economic Survey of India (2024)

19. UNIDO Manufacturing Competitiveness Reports